No Income Verification No Credit Check Mortgage by zrv15701

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									                    August 4, 2010




   UR Lending
FHA Lending Guide
        Topics of Interest
FHA Approval with UR Lending
FHA Products UR Lending Presently Offers
FHA Guidelines Analysis
Understanding FHA Process
Submitting FHA Loans to UR Lending
Q&A



                                            2
 FHA Approval
with UR Lending


                  3
FHA Approval with UR Lending

Submit a copy of HUD Approval Letter indicating
 FHA Lender ID Number

Submit a signed and dated FHA Addendum

UR Lending will verify Seller’s FHA Approval
 status and confirm Seller is in good standing with
 HUD

                                                      4
 FHA Products
  UR Lending
Presently Offers


                   5
   FHA Products Offered by UR
         Lending Bank
 FHA Fixed Purchase15, 20, 25 and 30 Years

 FHA 1/1/5 Arm with 2% Margin

 FHA New Construction

 95% / 85% Cash Out Refinance

 FHA Streamline

 FHA Secure (Details to Follow)
 Manufactured Home Programs



                                              6
FHA Guidelines Analysis




                          7
  FHA Guidelines - Eligible Borrowers

U.S. Citizen

Lawful Permanent Resident Aliens

Non-Permanent Resident Aliens



Non-U.S. Citizens with “NO LAWFUL” residency
    in U.S. are not eligible for FHA-insured
                   mortgage

                                    Let the Fund Begin   8
FHA Guidelines – Eligible Borrowers
U.S. Citizen
 • A valid Social Security Number verified by credit report,
   income documentation and social security card

 • No maximum age limit requirement, but minimum age is
   the age at which the mortgage note can be enforced legally
   in the state or other jurisdiction in which the property is
   located

 • 2 year employment history with most recent 2 full years
   documentation of income


                                                                 9
  FHA Guidelines – Eligible Borrowers
Lawful Permanent Resident Alien
 • Evidence of permanent lawful residency in U.S. issued by
   Bureau of Citizenship and Immigration Services (BCIS)

 • A valid Social Security Number verified by credit report,
   income documentation and social security card

 • 2 year employment history with most recent 2 full years
   documentation of income

 • If the authorization for permanent residency status will
   expire within one year and a prior history of residency status
   renewals exists, the lender may assume continuation will be
   granted

                                                                    10
  FHA Guidelines – Eligible Borrowers
Non-Permanent Resident Aliens
 • Legally eligible to work in the U.S. as evidence by an
   Employment Authorization Document (EAD) issued by
   Bureau of Citizenship and Immigration Services (BCIS)

 • A valid Social Security Number verified by credit report,
   income documentation and social security card

 • 2 year employment history with most recent 2 full years
   documentation of income

 • If the authorization for temporary residency status will
   expire within one year and a prior history of residency status
   renewals exists, the lender may assume continuation will be
   granted
                                                                    11
    FHA Guidelines - Eligible Properties

Single family (1,2, 3 and 4 units), Plan Unit Development
 (PUD) and Condominiums

Primary Residence - owner occupied properties only for
 purchase transactions

No Cash Reserve Requirement for 1 and 2 units.

Cash Reserve Requirement of 3 months principal, interest,
 taxes and insurance (PITI) of borrower own funds for 3 and 4
 units properties
    •   Cannot be derived from Gift Funds

                                                                12
FHA Guidelines - Down Payment Requirement
A cash investment of three percent of the contract sales price
 is required – the three percent may come from the following
 sources:
  • Borrower

  • Gift from a relative

  • Borrower's employer or labor union

  • Charitable organization, a governmental agency or public
    entity that has a program to provide homeownership
    assistance to low- and moderate-income families or first-
    time homebuyers

  • a close friend with a clearly defined and documented
    interest in the borrower.
                                                                  13
  FHA Guidelines - Seller Contribution
 Seller of subject property may give a contribution of
  up to 6% of sales price to borrower for pre-paids,
  discount points and closing cost

 It must be a true contribution; therefore, the sales
  price may not be increased to allow Seller to recoup
  contributing funds

 Seller of subject property may not give a gift to
  Borrower toward down payment


                                                          14
 FHA Guidelines - Closing Cost

New Requirement
• Seller may charge and collect from borrowers those
  customary and reasonable local fees necessary to close the
  mortgage.

• Due to existing requirements, borrowers may not pay a tax
  service fee, and may not be charged an origination fee
  greater than one percent




                                                               15
  FHA Guidelines - Assets Verification
Sufficient funds to close must be verified by
 following documentation:
  Most Recent 2 Months Bank Statements

  Any recent large deposit and new accounts must be
   explained

  Gift Funds: Gift Letter with copy of the canceled check,
   deposit slip and bank statement that shows the deposit or
   copy of certified check made on the donor's account and
   bank statement showing the withdrawal from the donor's
   account

  Grant funds from an organization that meets HUD’s
   guidelines. Provide an award letter indicating how grant
   funds will be distributed.
                                                               16
   FHA Guidelines - Ratio Requirements
Ratios are used to determine whether the borrower can reasonably
 be expected to meet the expenses involve in homeownership.
The lender must calculate two ratios:
  • Mortgage Payment Expense to Effective Income Ratios

  • Total of the Mortgage Payment and All Recurring Debt to
    Effective Income Ratios.

  • The Ratio requirement for the two calculations are 31% / 43%

  • Ratios up to 33%/45% may be acceptable only if borrower has
    at least 3 Compensating Factors

        Ratios may exceed 33% / 45% with AUS approval
                                                                    17
 FHA Guidelines - Compensating Factors
Satisfactory 12 to 24 months housing expense history greater or
 equal to new housing obligation
Small increase of housing expenses
Large down payment 10% or more
Ability to save with conservative attitude toward credit
Substantial documented cash reserves
Potential for increase earning
Relocation as a result of employment of primary wage earner
Substantial non-taxable income
Documented Income that is not reflected in effective income



                                                                   18
 FHA Guidelines – Stability of Income
Salaried Income Requirement:
  Provide most recent 30-days of pay-stubs and most recent two-years w-
   2s
  Verification of Employment (VOE) from each employer to show a full
   two years of income plus a 30 day paystub. VOE must indicate start
   date, base income and that employment is likely to continue
  Employment gaps more than 30 days must be explained.
  Income is determined by averaging complete two year income history
  If recent income is decreasing from previous two years, the lower recent
   income is considered for qualifying
        The above documentation requirements may be
             streamlined if AUS approval is received



                                                                              19
  FHA Guidelines – Stability of Income

Part-time, Overtime, Bonus and Seasonal Incomes:
  Provide a Verification of Employment (VOE) showing income has been
   received for the past two years plus paystubs

  VOE must indicate income is likely to continue.

  Monthly income is calculated by averaging last two year income history

  Income received for less than two years may be acceptable provided
   borrower can justify and document in writing the reason for using the
   income for qualifying purposes.

     The above documentation requirements may be
         streamlined if AUS approval is received


                                                                            20
  FHA Guidelines – Stability of Income

Commission Income Requirement:
  Copies of signed and dated tax returns for the last two years, along with
   the most recent pay stub
  Verification of Employment (VOE) must be obtained from each previous
   employer to verify income has been received for a full two years. VOE
   must indicate income is most likely to continue.
  Monthly income is calculated by averaging last two year income history
  If borrower’s income is 100% commission without documenting 2 two
   full years of commission income, borrower will not qualify for FHA
   financing at this time.
   The above documentation requirements may be streamlined if AUS
                         approval is received



                                                                               21
  FHA Guidelines – Stability of Income
Self-employment income:
   Borrower with a 25 percent or greater ownership interest in a business is
    considered self-employed
   Signed and dated individual tax returns, plus all applicable schedules,
    for the most recent two years.
   Signed copies of federal business income tax returns for the last two
    years, with all applicable schedules, if the business is a corporation, an
    "S" corporation, or a partnership.
   A year-to-date profit-and-loss (P&L) statement and balance sheet
   A business credit report on corporations and "S" corporations (if
    applicable )
   A business showing a significant decline in income over the period
    analyzed is not acceptable and will not qualify for FHA financing

    The above documentation requirements may be streamlined if AUS
                          approval is received

                                                                                 22
 FHA Guidelines – Stability of Income

Alimony, Child Support, or Maintenance Income.
 Provide a copy of the final divorce decree, legal
  separation agreement, or voluntary payment agreement,
  as well as evidence that payments have been received
  during the last twelve months (i.e., 12 months worth of
  banks statements)

 Provide proof income is likely to be consistently received
  for the first three years of the mortgage

 The above documentation requirements may be streamlined if AUS
                       approval is received



                                                                  23
FHA Guidelines – Stability of Income

Non-Taxable Income:
 Disability income, Public Assistance Income, Military
  Allowances, Social Security Income are not subject to
  federal income taxes

 Non-taxable income may be grossed up 25%

 Income most likely continue for 3 years and
  documentation from source of income

  The above documentation requirements will be streamlined
                if AUS approval is received


                                                             24
 FHA Guidelines – Stability of Income

Rental Income received for properties owned is acceptable if
 the borrower can document rental income is stable.
The following documentation may be considered:
   Most current lease showing rental agreement for 12 full months
   Most recent cancelled checks for 12 full months or
   Tax returns indicating 12 month rental history
   12 months rental history must be free of unexplained gaps greater than
    three months
   75% of rental income is used to qualify borrower
   The above documentation requirements will be streamlined if
                   AUS approval is received

                                                                             25
    FHA Guidelines - Credit Evaluation
Credit scores are not an important factor when evaluating a
 borrowers credit history
URL Underwriters will examine the overall pattern of credit
 behavior, rather than isolated occurrences of unsatisfactory or
 slow payments.
A period of financial difficulty in the past does not necessarily
 make the risk unacceptable if the borrower has maintained a
 good payment record for a considerable time period since the
 difficulty
Usually a full 12 months of good established credit payment
 history prior to the loan transaction is acceptable to overcome
 slow payments in the past
   The above documentation requirements will be streamlined if
                   AUS approval is received

                                                                     26
FHA Guidelines - Credit Evaluation

Collections
   FHA does not require that collection accounts be paid off as a
    condition of mortgage approval. Collections indicate a borrower’s
    regard for credit obligations and must be considered in the analysis of
    creditworthiness with the URL Underwriter documenting its reasons
    for approving a mortgage where the borrower has collection accounts
   The borrower must explain in writing all collections
   Medical collections do not have to be paid off
   Underwriter determines if non-medical collections must be paid off
    prior to closing
   The above documentation requirements may be streamlined if AUS
                         approval is received



                                                                              27
FHA Guidelines - Credit Evaluation

Judgments:
 Court-ordered judgments must be paid off before the
  mortgage loan is eligible for FHA insurance endorsement.

 An exception may be made if the borrower has agreed with
  the creditor to make regular and timely payments on the
  judgment and documentation is provided that the payments
  have been made in accordance with the agreement

 The borrower must explain in writing all judgments

  The above documentation requirements may be streamlined if
                  AUS approval is received

                                                               28
FHA Guidelines - Credit Evaluation

Foreclosure
 The borrower’s previous principal residence or other real
  property must have foreclosed or given a deed-in-lieu of
  foreclosure more than three years prior to be eligible for a
  FHA mortgage loan

 Borrower must have a good re-established credit history
  after the foreclosure or choose not to re-establish at all




                                                                 29
FHA Guidelines - Credit Evaluation

Bankruptcy:
 Chapter 13 bankruptcy does not disqualify a borrower from
  obtaining an FHA-insured mortgage provided the
  following:

 Borrower has been in Chapter 13 for at least one year

 Borrower’s payment performance has been satisfactory (i.e.,
  all required payments made on time)

 Borrower must receive permission from the trustee of the
  court to enter into the mortgage


                                                                30
FHA Guidelines - Credit Evaluation

Bankruptcy:
  Chapter 7 (liquidation) does not disqualify a borrower from obtaining
   an FHA-insured mortgage if the following criteria are met:

  At least two years have elapsed since the date of the discharge of the
   bankruptcy

  Borrower must have re-established good credit or chosen not to incur
   new credit obligations.

  Borrower also must have demonstrated a documented ability to
   responsibly manage his or her financial affairs. An elapsed period of
   less than two years, but not less than 12 months, may be acceptable if
   the borrower can show that the bankruptcy was caused by extenuating
   circumstances beyond borrower control


                                                                            31
FHA Guidelines - Credit Evaluation

Consumer Credit Counseling Payment Plans:
 Participation in a consumer credit counseling payment
  program does not disqualify a borrower from obtaining an
  FHA-insured mortgage provided the following requirements
  are met:

 one year of the pay-out period has elapsed under the plan

 payment performance has been satisfactory (i.e., all
  required payments made on time)

 Borrower must receive written permission from the
  counseling agency to enter into the mortgage transaction.
                                                              32
                    FHA Guidelines
Non-Traditional Credit:
   If borrower doesn’t have any traditional lines of credit on a credit
    report, non-traditional lines of credit may be obtain to qualify borrower

   Provide documentation for a full 12 months:
          Utility payment records
          Automobile insurance payments
          Day Care
          Rental payments
   Must provide at least three pieces of Non-Traditional documentation. If
    borrower has rental expenses, it must be one of the of the three
    documents

   May provide documentation to Credit Reporting Agency to establish
    credit or provide third-party documentation directly to URL Underwriter


                                                                                33
                FHA Guidelines
Verifying Previous Housing Obligations
 Rental verification:

    Credit Report, Management Service or 12 month cancelled checks.


 Mortgage Verification:

    Credit Report, Verification of Mortgage or 12 month cancelled
     checks


   The above documentation requirements may be
       streamlined if AUS approval is received

                                                                       34
              FHA Guidelines
Non-Occupant Co-Borrowers are allowed
 No minimum ratio requirements for occupying borrower

 Non-Occupant Co Borrower must be a relative or a
  document friendship with borrower

 Guideline Ratios for occupying borrower and non-
  occupying combined are 31/43

 Single family properties or one unit condos only



                                                         35
FHA Guidelines - FHA New Construction
There are three types of New Construction:
   Proposed Construction – construction has not started, only land exists

   Under Construction – construction has began, but not 100% complete

   Existing New Construction – 100% completed and property less than
    one year old.
      URL is only financing FHA Existing New Construction Loans.
         Also known as the permanent loan or the end loan


  UR Lending is not financing FHA Proposed Construction and
           FHA Under Construction loans at this time



                                                                             36
FHA Guidelines - FHA New Construction
Required Documentation - FHA New Construction
  It is the Appraiser and Lender (Direct Endorsement (DE) Underwriter)
   responsibility to obtain the following documentation:
  Builder’s Certification of Plans, Specifications and Site, Form HUD-
   92541
  Builder Warranty, Form – 92544
  Building Permit and Certification of Occupancy or Compliance
   Inspections and 10-Year Warranty Lender
  Wood Infestation Report, NPCA 99a and 99b
  Local Health Authority well water analysis or septic report, where
   applicable


                                                                          37
FHA Guidelines - FHA New Construction
Energy Efficient Mortgage:
   Borrower may upgrade their home by installing energy efficient
    improvements and incorporate the cost into the mortgage
   Existing and newly constructed one-to-four unit properties are eligible
   Ratios are 33% / 45%
   Maximum FHA mortgage amounts vary by area and may be exceeded
    by up to 5% or $8,000, whichever is less
   Borrower must select the energy efficient mortgage option and notify
    the Lender before closing


   Ratios may exceed 33% / 45% with AUS approval

                                                                              38
   FHA Guidelines – 95/85% Cash Out

95% of the appraised value is permitted under the following
 eligibility terms and conditions:
   Property owned as principal residence for at least 12 months preceding
    the date of the loan application.
   No late mortgage payments within last 12 months
   If any late mortgage payment during preceding 12 months, only 85%
    will be considered
   1or 2 unit dwelling only (3 and 4-unit dwellings are not eligible).
   Non-occupant co-borrowers are not permitted on cash-out refinances


The above documentation requirements will be streamlined if AUS
                     approval is received


                                                                             39
               FHA Guidelines
FHA Streamline with Appraisal:
 Borrower must have an existing insured FHA loan

 Must be owner occupied

 Mortgage payment history required for 12 months, or life of
  loan if less than 12 months old

 No credit report required

 Income and Assets not disclosed or verified unless the loan
  must Credit-qualify

 Primary residence only (1-4) and borrower wants to roll
  closing costs into loan (no escrow shortages can be included)
                                                                  40
               FHA Guidelines
FHA Streamline with Appraisal
 Must always be same borrowers as original FHA loan

 Only exceptions are in cases of death or divorce more than
  6 months

 Provide Death Certificate or Divorce Decree, Quit Claim
  Deed executed at least 6 months ago and 6 months
  cancelled checks for mortgage payments in borrower’s
  name

 Borrower wishing to remove a borrower for death or
  divorce must do a FHA streamline with an appraisal
                                                               41
                   FHA Guidelines
FHA Streamline with Appraisal
   Closing costs, prepaid items, UFMIP, and reasonable discount points
    (approximately 2%) may be included in the new mortgage subject to
    maximum mortgage requirements

   Pay off first mortgage only – all 2nd mortgages and HELOCs must be
    re-subordinated

   ARM to Fixed limitation is 2% above the current interest rate

   Principle and interest can not increase more than 20%




                                                                          42
                  FHA Guidelines
FHA Streamline without an Appraisal
 • All Guidelines same as Streamline with Appraisal except:
   • The maximum loan amount on owner occupied properties is limited
     to the lesser of (1) the original principal of the loan being refinanced
     or (2) the sum of the current outstanding principal balance of the
     existing mortgage plus closing costs, pre-paids and discount points
   • The maximum loan amount on 2nd homes and investment properties
     (which were originally owner-occupied by the Borrower) must be
     financed w/o an appraisal and is limited to only the outstanding
     principal balance, and with a fixed rate and no increase in the P&I
     payment
   • Maximum term is the lesser of 30 years or the remaining term of the
     old loan plus 12 years this applies to streamlines without an appraisal




                                                                                43
                FHA Appraisals
Appraisal Process Overview
 Appraiser must be FHA approved and not on any industry bank
  exclusionary lists

 FHA has adopted the following Fannie Mae appraisal reporting
  forms (mortgage industry standard forms):
    Uniform Residential Appraisal Report (Fannie Mae Form 1004)
     for all 1 unit single family dwellings
    Individual Condominium Unit Appraisal Report (Fannie Mae
     Form 1073) for all individual condominium units
    Small Residential Income Property Appraisal Report (Fannie Mae
     Form 1025) for all 2 to 4 unit single family dwellings
 Minor property conditions no longer require automatic repairs for
  existing properties

                                                                      44
       The Newest FHA Product
FHASecure
 Effective immediately through December 31, 2008

 Delinquency resulted from reset

 Eligibility Requirements: Non FHA-ARM that has reset

 Six months on-time payments prior to reset

 Demonstrated capacity to repay

 Single Family owner-occupied, principal residence

 Compensating Factors are allowed with Manual
  Underwriting                                           45
       The Newest FHA Product

FHASecure (continued)
 Current FHA geographical maximum mortgage limits
  apply

 Current FHA maximum loan-to-value limits apply

 May cover existing first lien, purchase money second,
  closing costs, prepaid expenses, points, late charges,
  arrearages, and other costs (No Cash Out allowed)


      Effective immediately through December 31, 2008

                                                           46
          Most Recent FHA Change

Second Liens in conjunction with FHASecure are allowed
   Effective immediately

   Must be Subordinate to First Lien

   First Lien must meet FHA LTV and Loan Limit Requirements

   CLTV may exceed the FHA LTV and Loan Limits (Lenders
    Discretion)

   Qualifying FHA Ratios (31 / 43) apply to second liens, unless payment
    are deferred more than 36 months

   Compensating Factors are allowed with Manual Underwriting


                                                                            47
  FHA Mortgage Insurance Premium
              (MIP)

Current MIP Structure
 Every FHA loan has two types of Mortgage Insurance

 UFMIP: Up-Front Mortgage Insurance Premium

 Annual Mortgage Insurance Premium




                                                       48
  FHA Mortgage Insurance Premium
              (MIP)

Current MIP Structure
 UFMIP: Up-Front Mortgage Insurance Premium is
  calculated on the Base loan amount

 FHA has reduced its UFMIP to 1.50%




                                                  49
   FHA Mortgage Insurance Premium
               (MIP)
Annual MIP: FHA requires collection in monthly
 installments:
 Annual MIP is .50% for a 30 year mortgage

 Calculation for monthly payment is:
                  (.50% x base loan amount ÷12)
 Borrower must have mortgage for 5 years and the LTV
  must go down to 78% before borrower stops paying Annual
  MIP




                                                            50
   FHA Mortgage Insurance Premium
               (MIP)

Annual MIP: FHA requires collection in monthly
 installments:
 Annual MIP is .25% for mortgage terms 15 years or less

 Calculation for monthly payment is: (25% x base loan
  ÷12)

  If borrower puts down more than 10% (89.99% LTV),
  there is no Annual MIP for terms 15 years or less




                                                           51
Understanding the FHA
Process and Resources




                        52
FHA Connection https://entp.hud.gov/clas/index.cfm




                                                     53
 Understanding the FHA Process
 CASE NUMBER
 The Case Number is assigned to the Subject Property

 A Case Number must be ordered in FHA Connection when
  a borrower finds a property

 The Case Number must be ordered in broker’s name with
  United Residential Lending, LLC ( UR Lending) as
  sponsor

 The Case Number must match on all documents

 If a Case Number is originally ordered in another
  company’s name, it must be assigned to UR Lending
                                                          54
FHA Connection Case Number assignment flow:
Single Family FHA > Single Family Origination >
 Case Processing > Case Number Assignment.




                                                  55
          FHA Case Number Assignment


Validation Page:
Property Address
and Borrower
Data must be
validated before
the FHA Case
Number can be
received.




                                       56
 Case Number
 Assignment Page

Case Number Assignment Page has 7
sections that must be completed before a Case
number can be received:

     General Information,
     As Required,
     Property Address,
     Appraiser Fields,
     Compliance Inspection Fields,
     Borrower Information,
     Lender Notes




                                                57
Case Number Assignment
    has been created




                         58
     Understanding the FHA Process
Credit Alert Interactive Voice Response System
 (CAIVRS)
 Searches for any delinquent federal debts from borrower
 You may access CAIVRS site through FHA Connection or
  go directly entp.hud.gov/caivrs/public/home.html to access
  CAIVRS
 CAIVRS must be ordered on all Borrowers
 If the borrower, as revealed by public records, credit
  information, or HUD’s Credit Alert Interactive Voice
  Response System (CAIVRS), is presently delinquent on any
  Federal debt, the borrower is not eligible until the
  delinquent account is brought current, paid, otherwise
  satisfied, or a satisfactory repayment plan is made between
  the borrower and the Federal agency owed and is verified in
  writing.                                                      59
   Understanding the FHA Process

ENTER CAIVRS in the “CAIVRS Authorization” section.
A FHA Connection User name and Password is required to
 enter the CAIVRS site




                                                          60
   Understanding the FHA Process
CAIVRS Agreement Page: Click on “I Agree”




                                            61
       CAIVRS Prescreening Page
Borrower’s Social Security Number is required
          to order CAIVRS Number




                                                62
  Understanding the FHA Process

Limited Denial of Participation (LDP) and General Service
 Administration (GSA)
  • LDP and GSA must be ordered on each party benefiting from FHA
    mortgage transaction (real estate agents, sellers, borrowers, brokers,
    originators)

  • LDP and GSA are list of parties excluded from participating in
    loan transactions with the federal government.

  • Sellers may access LDP and GSA list in FHA Connection on the
    FHA Approve List Page or directly through the LDP or GSA sites



                                                                             63
   Understanding the FHA Process
Limited Denial of Participation (LDP)
 • The Limited Denial of Participation (LDP) is an action taken by a HUD
   field office or the Deputy Assistant Secretary for Single Family or Multi-
   family Housing which excludes a party from further participation in HUD
   programs. A party is usually excluded for federal delinquent debt.

 • The name of each party to the transactions is inputted separately into the
   LDP search engine. If any party’s name is on the list, that party has the
   burden of proofing she/he isn’t barred from participating in HUD
   Programs

 • The list is organized in alphabetical order. Customer (Broker) must print
   out and place appropriate LDP pages in the file. Underwriter will review
   pages to verify no one involved in the FHA mortgage transaction is on the
   list

 • The LDP List may be accessed at
   www5.hud.gov/Ecpcis/main/ECPCIS_List
                                                                                64
     Understanding the FHA Process
LDP Search – Place a Name in Search Engine to access LDP List




                                                                65
 Understanding the FHA Process
General Service Administration (GSA)
 • General Service Administration’s (GSA’s) Excluded
   Parties Listing System (EPLS) provides access to various
   electronic reports that identify parties that are excluded
   throughout the U.S. Government from receiving Federal
   contracts and subcontracts as well as from certain types
   of Federal financial and non financial assistance and
   benefits.

 • The name of each party to the transactions is inputted
   separately into the GSA search engine. If any party’s
   name is on the list, that party has the burden of proofing
   she/he isn’t barred from being involved in FHA
   transactions

 • GSA list may be accessed from FHA Connection and the
   GSA site at www.epls.gov/
                                                                66
  GSA List Website: Place name in “Search
Current Exclusions” section to Access GSA List




                                                 67
  Understanding the FHA Process

FHA Mortgage Loan Limits
 FHA Mortgage loan limits may be accessed from FHA Connection or
  https://entp.hud.gov/idapp/html/hicostlook.cfm
 This web page allows you to look up the FHA mortgage limits for your
  area or several areas, and then list them by state, county, or
  Metropolitan Statistical Area.




                                                                         68
     Understanding the FHA Process
                                         Low Mortgage Limits (Floor)
 Each county in every state has a
  maximum FHA loan limit.                1 Unit     $200,160
                                         2 Units    $256,248
 The loan amount can never exceed
                                         3 Units    $309,744
  this loan limit.
                                         4 Units    $384,936
 There are loan limit requirements
  for 1, 2, 3 and 4 unit properties.
                                         High Cost Limits (Ceiling)
 Most County Limits will fall between   1 Unit    $362,790
  limits in this table                   2 Units   $ 464,449
                                         3 Units   $561, 411
                                         4 Units   $697,696


                                                                       69
 Understanding the FHA Process
FHA Mortgage Loan Limit Website




                                  70
 Understanding the FHA Process
Counties in New Jersey Loan Limits




                                     71
 Understanding the FHA Process
Important FHA Websites
 • HUD Website:
   • www.hud.gov
 • FHA Website:
   • www.fha.gov
 • HUD Lender page:
   • www.hud.gov/groups/lenders.cfm
 • FHA MortgageLimits:
   • https://entp.hud.gov/idapp/html/hicostlook.cfm
 • FHA Connection:
   • https://entp.hud.gov/clas/index.cfm
 • Mortgagee Letter & HUD Handbooks:
   • www.hudclips.org/cgi/index.cgi

                                                      72
Submitting FHA Loans
   to UR Lending




                       73
 Submitting FHA Loans to UR Lending
   The Key Steps in the FHA loan process are tied
together through open and ongoing Communication
  between the Customer and the Operational Units.

                    File Submission
    Communication
      Customer




                     Underwriting

                      Rate Lock

                    Closing/Funding



                                                    74
Submitting FHA Loans to UR Lending:
          Communication
Contact your Account Manager (AM) for:
  •   Notification of underwriting decision and/or options
  •   Status of conditions submitted and reviewed
  •   Final notification of loan approval
  •   Obtaining the most up to date status of your loans
  •   Coordinating Funding dates and scheduling
  •   Maintaining Rate Locks and extensions
  •   All issues or questions concerning the loan process




                                                             75
    Submitting FHA Loans to UR Lending:
              File Submission
 Originate the loan application on your LOS
 Run Credit and obtain DU/LP decision
 Contact your URL Sales representative (AE) for pricing
 Fill out the URL File Submission Form and place in folder
 • Form indicates the information to submit with the loan, such as:
   * A complete loan application             * MCAW
   * CAIVRS results                            * Credit Report
   * DU or LP Findings                         * LDP/GSA
   * Printout - FHA Case Num Assignment * Appraisal
   * if “Refer”, include explanations and 2-3 Compensating Factors
 Ship (mail/fax/email) file URL Operations Center in AZ
 Be sure to calculate & include the proper fees up front
 • Fees not disclosed up front cannot be added at Closing
                                                                      76
Submitting FHA Loans to UR Lending:
           Underwriting
URL will confirm that the DU/LP decision was assigned
 correctly to URL
URL will validate the AUS Approval or manually underwrite
 any “Refer” decision
URL will contact you with the initial decision
  • If loan will be Suspended or Declined, the underwriter will discuss any
    opportunities to restructure the deal
You will receive a “Conditional Approval Notice” with:
  • Prior to Doc conditions and
  • Prior to Fund conditions
Obtain the required conditions from the Borrower and
 submit them immediately to URL via fax

                                                                              77
 Submitting FHA Loans to UR Lending:
              Rate Lock


Rates can be Locked at anytime during the loan
 process prior to Closing/Funding according to URL
 existing guidelines and limits
All loans must be Locked before Closing/Funding
 can be scheduled
Coordinate all Locks, extensions, etc. directly with
 your AM

                                                        78
Submitting FHA Loans to UR Lending:
          Closing/Funding
Your AM will validate that everything is ready to fund
FHA Loans are only available for Table Funding
  • All loans must close in URL’s name
Your AM will schedule the Closing/Funding date
The Funder works with you to get Funding Conditions
The Title Agent must submit the Note and any Government
 specific forms required for Closing
If loan info, loan amount or closing costs change,
  URL will be required to:
  • Have an Underwriter update the MCAW and re-run DU
  • Have the Funder re-draw documents as needed
  • Recalculate to ensure loan limits and fees are acceptable
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UR Lending – FHA



     Q&A



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